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Overview

This Section deals with accounting for intangible assets acquired or developed by a not-for-profit organization.

A not-for-profit organization applies Section 3064 Goodwill and Intangible Assets, in Part II of the Handbook, to such assets except as otherwise provided in this Section. This Section provides that when an intangible asset no longer has any long-term service potential to the organization, the excess of its net carry amount over any residual value should be recognized as expense in the statement of operations. Any write-down should not be subsequently reversed.

The Section provides for a simplification - if the NPO (and any entities that it controls) has average annual revenues recognized in the current and preceding period that is less than $500,000, it need not apply the Section. Instead, it would make certain required disclosures about its intangible assets.

History of Section 4432

Date

Development

Comments

December 2010

Part III of the CPA Canada Handbook issued

Effective for fiscal years beginning on or after January 1, 2012. Earlier application permitted.